24-30784_SSJ_Final_Award Posting_Redacted.pdf

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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I. Contracting Activity.

This Class Sole Source Justification is to request authority for Other Than Full and Open Competition supporting requirements generated for the Support Equipment & Vehicles Program Office, Air Force Life Cycle Management Center (AFLCMC)/WNZ, Robins AFB, Georgia. The contracting activity for this requirement is AFLCMC/WNKAB, Robins AFB, Georgia. The purchase request number supporting this contracting action is FD2060-24-30784.

II. Nature and/or description of the action being processed.

Due to the circumstances described herein, the activity requests authority to acquire Joint Oil Analysis Program (JOAP) repair services listed in this document using Other Than Full and Open Competition as prescribed by 10 U.S.C. 3572, Implementation of Simplified Acquisition Procedures (41 U.S.C.

1901). This action will result in the award of a follow-on Firm Fixed Price Requirements Indefinite Delivery Contract (IDC) which will be structured with a 1-year basic plus four (4) 1-year options.

Based on the projected contract award date, orders can be issued 20 December 2024 through 19 December 2029, if all options are exercised.

This sole source requirement will be purchased from the following vendor:

Spectro Scientific, Inc.

1 Executive Drive, Suite 101 Chelmsford, Massachusetts 01824-2564

CAGE: 1BL81

Large Business

III. Description of supplies/services required to meet agency needs.

This requirement is for the continued repair and calibration of oil analysis spectrometers, National Stock Number (NSN): 6650-01-415-1767RN, Part Number: OIL-M/N-W, maximizing their availability and operation for use by the JOAP. Services will consist of telephone support, shipment of parts, and on-site visits to inspect, repair, test and calibrate spectrometers to return spectrometers to a serviceable condition. This requirement supports the Air Force, Air National Guard, Air Force Reserve, and the United States Army.

The nominal contract line item number (CLIN) structure and best estimated quantities (BEQs) is as follows:

CLIN Name Unit Price BEQ/Unit of Issue Total Estimated Cost 0001 Telephone Support $ MO $ 0002 Parts $ EA $ 0003 Onsite Repair $ EA $ 0004 CONUS Travel $ EA $ 0005 OCONUS Travel $ EA $ 0006 DATA LO Not Separately Prices (NSP) Basic Total Estimated Cost $

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

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1001 Telephone Support $ MO $ 1002 Parts $ EA $ 1003 Onsite Repair $ EA $ 1004 CONUS Travel $ EA $ 1005 OCONUS Travel $ EA $

1006 DATA LO NSP

Option 1 Total Estimated Cost $

2001 Telephone Support $ EA $ 2002 Parts $ EA $ 2003 Onsite Repair $ EA $ 2004 CONUS Travel $ EA $ 2005 OCONUS Travel $ EA $

2006 DATA EA NSP

Option 2 Total Estimated Cost $

3001 Telephone Support $ EA $ 3002 Parts $ EA $ 3003 Onsite Repair $ EA $ 3004 CONUS Travel $ EA $ 3005 OCONUS Travel $ EA $

3006 DATA LO NSP

Option 3 Total Estimated Cost $

4001 Telephone Support $ MO $ 4002 Parts $ EA $ 4003 Onsite Repair $ EA $ 4004 CONUS Travel $ EA $ 4005 OCONUS Travel $ EA $

4006 DATA LO NSP

Option 4 Total Estimated Cost $

TOTAL $

Total estimated contract value is $ . A 5% escalation factor was applied to the estimated unit price for each out-year option. The basis for the estimated cost was derived from prices determined by the last period of the prior contract, FA8533-20-D-0002. This follow-on contract will be funded via Operations & Maintenance, or 3400 funds.

The BEQs were determined based on requirement necessary to sustain the spectrometer until

Sole Source (Including Brand Name) Justification - Simplified Procedures for Certain Commercial Items

March 2023 Page 4 of 8 implementation of a fleet replacement. The delivery requirements for this acquisition are two weeks after receipt of order.

Orders can be issued on this Requirement IDC for five years after contract award, if all options are exercised. The ordering period is anticipated to be 20 December 2024 through 19 December 2029.

This SSJ covers the Requirement IDC through completion of all task orders. Cumulative orders will not exceed the Simplified Acquisition Procedure threshold of $7.5M.

This NSN was screened and assigned Repair Method Code (RMC)/Repair Method Suffix Code (RMSC) of R3/H. RMC “R3” indicates that the equipment is to be repaired, for the second or subsequent time, directly by the actual manufacturer. RMSC “H” indicates the Government does not physically have in its possession sufficient, accurate, or legible data to repair this part from other than the current source. This code is applicable only to parts under immediate buy/repair requirements and only for as long thereafter as the deficiency is under review for resolution and appropriate recoding. This code is only assigned at the conclusion of limited screening, and it remains assigned until the full screening process resolves physical data questions and results in assignment of a different RMSC.

Contract Data Requirements Lists will include the following:

DI-ADMN-81249C Meeting Agenda DI-ADMN-81250C Meeting Minutes DI-AVCS-80700A NOT 1 Computer Software Product End Items DI-ILSS-80872 NOT 2 Training Materials DI-IPSC-81442A NOT 2 Software Version Description DI-IPSC-82249A Software Assurance Evaluation Report DI-MGMT-81928 NOT1 Progress and Status Report DI-MGMT-82001A DoD Risk Management Framework Package Deliverables DI-SCRE-82140 Cybersecurity Test Plan DI-MGMT-82142A Naval Aviation Cybersecurity Test Report DI-MISC-80508B Technical Report - Study/Services DI-MISC-81454D Computer Program Identification Number Catalog Information DI-SESS-80639E Engineering Change Proposal DI-SESS-80640E Request for Variance DI-SESS-80642E Notice of Revision Logistics DI-SESS-81758A NOT 1 Product Data DI-SESS-81874 Engineering Data for Provisioning

This Class Justification covers all orders issued against this Requirements IDC during the ordering Period of Performance including the Option years, if exercised.

IV. Statutory authority permitting other than full and open competition.

DAFFARS 5313.501 - 10 U.S.C 3572, Implementation of Simplified Acquisition Procedures (41 U.S.C. 1901)

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V. Demonstration that the contractor's unique qualifications or nature of the acquisition requires the use of the authority cited above (applicability of authority).

Currently, Spectro Scientific is performing repair services for the OIL-M/N-W spectrometers under sole source contract FA8533-20-D-0002. This contract was awarded on 20 December 2019 and expires on 19 December 2024. The agency's minimum needs can only be satisfied by the unique and highly specialized capabilities/services available from Spectro Scientific as demonstrated in the following paragraphs.

The OIL-M/N-W Spectrometers are highly specialized, and is the primary instrument used widely by aerospace, and industry, to both monitor the condition of oils and to predict maintenance requirements. The spectrometers are able to detect and quantify the presence of elements that exist as small, suspended particles dissolved in natural or synthetic petroleum-based products. This information is used to monitor oil condition and identify abnormal engine wear with the goal of preventing potential equipment failure while also improving operational readiness.

While there are several commercial products that perform a similar function as the OIL-M/N-W, the Air Force, Army, and Navy entered into a tri-service agreement in 1995 to create the JOAP which established, consolidated, and coordinated the oil programs among the agencies. At formation, the OIL-M/N-W Spectrometers was selected as the single approved oil testing solution. JOAP standardizes the analytical techniques, procedures, data collection, calibration standards and the instrumentation/equipment utilized by the program. JOAP also utilizes trend tables to monitor the condition of aircraft world-wide and to predict maintenance requirements. The analysis from spectrometers must be able to be correlated amongst differing machines at differing Air Force locations.

JOAP currently has a replacement program named Expeditionary Fluid Analysis System (EFAS).

This replacement program was initiated as a Small Business Innovation Research (SBIR) project to Spectro Scientific for the Field Lab 58MA (FL58MA). The final phase of the replacement program is through SBIR Phase III contract, FA8533-21-D-0007. This contract was awarded in June 2021.

Functional testing has been completed and Spectro Scientific is in the process of delivering production units. As EFAS deliveries are made, JOAP is sending units to the field. Fielding is expected to be completed in May 2025. Once this process is complete, the EFAS will take over all testing oil function. JOAP will not qualify another oil testing system due to the logistical costs and decrease in trend analysis validity.

The Government does not possess the technical data package (TDP) required to organically perform repairs associated with the OIL-M/N-W Spectrometers or to support full and open competition to qualify new sources. Spectro Scientific is the designer and the Original Equipment Manufacturer (OEM) of the 28 years old Spectrometer. They are the only source of repair with the knowledge, skill, engineering support, and proprietary data necessary to satisfy this requirement and resolve obsolescence issues.

Spectro Scientific has declined interest in selling the TDP to the Government. The last inquiry to Spectro Scientific was on 07 November 2023. Spectro Scientific responded they would not sell the TDP for the Spectrometer to the Government. In addition, Spectro Scientific stated only their

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March 2023 Page 6 of 8 trained technicians are authorized to repair the Spectro Scientific Spectrometers and no other vendor is authorized to fabricate proprietary parts in order to repair the Spectro Scientific Spectrometer.

A competitive acquisition would require a reverse engineering effort to develop a TDP for the OIL- M/N-W. A reverse engineering effort would be a duplication of cost not expected to be recovered through competition and result in unacceptable delay in meeting mission requirements. Based on a similar reverse engineering effort for a test set, the cost to reverse engineer the OIL-M/N-W Spectrometer is estimated to cost $ and take approximately 24 months to complete. This is based on the cost and time to create, test, and validate the TDP. This time period exceeds the implementation time for EFAS.

The Air Force typically performs 250,000 oil samples a year and analyzes them with the spectrometer. Approximately 20 of those samples indicate a “T” code which is a condition requiring the removal of the aircraft from service and a teardown of the engine. A “T” code oil sample means an engine failure is imminent. If the Air Force's capability to sample and analyze engine oil is degraded due to Spectrometers not being serviceable, the Air Force's mission capability to operate aircraft will be subsequently degraded. Mission commanders will have to decide to ground aircraft or accept engine failure risks that could lead to loss of aircraft and personnel.

Accordingly, Spectro Scientific is the only firm capable of providing the supplies and services described in Section III above without the U.S. Air Force experiencing substantial duplication of cost that could not be expected to be recovered through competition and unacceptable delays in fulfilling its requirements.

VI. Description of efforts made to ensure that offers are solicited from as many potential sources as practicable.

A Sources Sought (SS) / Request for Information (RFI) was posted to SAM.gov on 26 January 2024 with a response date of 12 February 2024 under Notice ID FA8534-24-R-SPEC. The SS/RFI requested responses from interested vendors that possess the expertise, capabilities, and experience to meet qualification requirements for this effort. No vendors responded to the SS/RFI. However, on-going discussions were held with Spectro Scientific in regard to the continuation of Spectrometer repairs. The incumbent, Spectro Scientific was determined to be the only capable vendor.

The requirement will be synopsized in SAM.gov in accordance with FAR 5.201. It is anticipated that sources having an interest in subcontracting may be identified through synopsis. Any source who responds to the Government as a result of this synopsis will be identified to the prime contractor as a potential subcontracting possibility.

VII. Determination by the Contracting Officer that the anticipated cost to the Government will be fair and reasonable.

The overall cost of this acquisition will be negotiated in accordance with procedures in FAR Part 12 and FAR 13.106-3(a) (2) and include a statement of price reasonableness confirming the ultimate price to the Government is fair and reasonable. Additional pricing methodologies to negotiate fair and reasonable price may include reviewing publicly offered catalogs, comparison to

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March 2023 Page 7 of 8 historical contractor sales, and/or analysis of limited cost or pricing information provided by the contractor. In the event that limited cost or pricing information is made available, the Government's negotiation objective will be developed using local technical analysis and direct and indirect rate factors recommended by the Defense Contract Management Agency.

VIII. Description of the market research conducted and the results, or a statement of the reasons market research was not conducted.

Market research was conducted 07 September 2023 to 12 February 2024 in accordance with FAR Part 10.001 and 10.002. The Market Research Report was completed on 19 February 2024. The market research techniques used are as follows:

As described in Section V above, a SS/RFI was posted to SAM.gov advising industry of the pending acquisition and soliciting inquiries from interested vendors. The SS/RFI was posted on 26 January 2024 under Notice IDFA8534-24-R-SPEC.

The OIL-M/N-W is considered a commercial item as defined in FAR 2.101. The Spectrometer is various configurations is used by both the military and the commercial aviation industry.

The market research concluded Spectro Scientific is the only vendor capable of fulfilling the Government's requirement.

IX. Any other facts supporting the use of Other Than Full and Open Competition.

None.

X. List of any sources that expressed, in writing, an interest in the acquisition.

See Section VI above.

XI. A statement of the actions, if any, the agency may take to remove or overcome any barriers to competition before making subsequent acquisitions for the supplies or services required.

Due to the oil testing program being taken over by the EFAS which is in final production and expected to achieve full mission capability by May 2025, there will be no plan to overcome limitations to competition as purchase of TDP, qualification of a new source would not take place before the Spectrometer is retired.

The plan to break barriers to competition in the prior SSJ was to continue engaging the OEM on selling the TDP to the Government and monitoring the market as the Field Lab 58M (i.e. EFAS) replacement was under development. The plan was to continue sustaining the OIL-M/N-W. “…until the Government is sure the oil analysis can safely move to the FL58M only. If efforts to develop the Field Lab 58M are successful by FY2023, there will no longer be a need to repair the OIL-M/N-W…” The Field Lab 58M (EFAS) was originally projected for completion in FY2023 but as stated above, the new projection date is May 2025. The prior SSJ also stated that in the event of delays in fielding of Field Lab 58M, it would continue to contact the OEM for procurement of the TDP. This was accomplished Nov 2023 and in which Spectro Scientific declined to sell the TDP to the Government.